CarMax is a leading retailer of used cars in the United States, specializing in providing a streamlined purchasing experience for customers. The company operates a network of physical stores where customers can browse a wide selection of high-quality, pre-owned vehicles, often incorporating innovative technology to enhance the shopping experience. In addition to traditional in-store sales, CarMax offers online car buying options, allowing customers to research, finance, and purchase vehicles from the comfort of their homes. Their focus on transparency and customer service is evident in their no-haggle pricing policy, ensuring that buyers receive competitive prices without the pressure often associated with car buying. Read More
A number of stocks jumped in the afternoon session after markets continued to rally amid growing investor optimism for a Federal Reserve interest rate cut in September. This optimism was spurred by a recent Consumer Price Index (CPI) report that did not show runaway inflation, increasing the perceived probability of a rate cut to over 90%. Lower interest rates are generally seen as a positive for the economy as they reduce borrowing costs for consumers, which can stimulate spending on non-essential goods. Consequently, investors bid up shares in the apparel, home furnishings, and automotive retail industries in anticipation of stronger consumer demand.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Shares of used automotive vehicle retailer Carmax (NYSE:KMX)
jumped 3% in the morning session after JPMorgan upgraded the stock's rating to "Neutral" from "Underweight". The investment bank indicated a less negative outlook on the used-car retailer. Concurrent with the upgrade, JPMorgan lowered its price target on CarMax shares to $58 from a previous target of $65. Despite the reduction in the price forecast, the improved rating from "Underweight" was the likely catalyst that pushed the stock higher.
Retailers are overhauling their operations as technology redefines the shopping experience. Still, secular trends are working against their favor as e-commerce continues to take share from brick and mortars.
This puts retail stocks in a tough spot, and over the past six months, the industry has pulled back by 8.3%. This drop is a noticeable divergence from the S&P 500’s 3.3% return.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
A number of stocks fell in the afternoon session after the Trump administration announced intentions to impose a 35% tariff on many goods imported from Canada.
Let's have a look at what is happening on the US markets one hour before the close of the markets on Friday. Below you can find the top S&P500 gainers and losers in today's session.
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets.
Curious about the market action on Monday? Dive into the US markets to explore the gap up and gap down stocks in the S&P500 index during today's session.
